News + Font Resize -

Daiichi Sankyo net profit dips by 78% in first nine months
Our Bureau, Mumbai | Thursday, February 2, 2012, 15:45 Hrs  [IST]

Daiichi Sankyo has suffered heavy setback during the first nine months ended December 2011 on account of poor performance by Ranbaxy Laboratories, a wholly owned subsidiary, earthquake in Japan and stronger Yen. The company's net profit declined by 78 per cent to ¥17,542 million  from ¥79,663 million mainly due to the recording an extraordinary losses of ¥40.3 billion in in the third quarter, following Ranbaxy's provision of US$ 500 million in connection with the issues Ranbaxy has with the US Department of Justice. Its operating income moved down by 23.8 per cent to ¥91,872 million.

Its net sales also declined by 6.9 per cent to ¥748,056 million from ¥696,403 million. The net sales of Ranbaxy Group declined by 15 per cent to ¥113.9 billion, primarily due to the impact of the strong Yen and significantly lower US sales of the antiviral drug valacyclovir which had a large contribution to the results in the first nine months of previous year, despite the contribution from donepezil in the US.

There was steady growth in products such as he anti-hypertensive agent olmesartan, the anti-inflammatory analgesic Loxonin, the paediatric vaccine for the prevention of infection ActHIB and the antiplatelet agent Effient. The net sales declined due to negative effect from foreign exchange owing to the stronger yet, a sales decline following the return of domestic marketing rights in certain products, and a decrease in net sales of Ranbaxy Laboratories. The company launched Lixiana and co-promoted Rotarix in Japan.

Daiichi Sankyo's net sales in Japan declined by 6.4 per cent to ¥376.8 billion as the sales of prescription drugs declined by 3.7 per cent to ¥323.8 billion. Its sales in North America declined by 4.1 per cent to ¥136.2 billion. In addition to the growth from Effient and other, Zelboraf related income in Plexxikon Inc., which was acquired during the current period, also benefited sales. Its net sales in Europe declined by 0.8 per cent to ¥49.1 billion.

The company has upwardly revised its net sales forecast by ¥10 billion to ¥940 billion for the full year FY 2011 as against previously projected ¥930 billion. However, the net profit is stated significantly lower at ¥15 billion as against ¥26 billion.

Post Your Comment

 

Enquiry Form